Tuesday, June 19, 2012

RE: It's time for a carbon tax

I am writing you as a proud
but concerned New Democrat. Your leaderships have advocated for environmental
policies that are unbecoming of a government in waiting. Specifically, I speak
to the party’s commitment to cap and trade strategies as a means to control
Canadian green house gas emissions. Cap
and trade policies are economically inefficient and seriously compromise the
ability for governments to reduce emissions.

Cap and trade means
the creation of an illegitimate market for carbon credits. How do you value a
fake commodity? And are they given to polluters
for free, which would reward current big polluters rather than innovators, or
are they sold as one-time tax on business during our economic recovery? Further,
the reduction aspect of cap and trade is that the cap will be gradually
lowered; essentially, the government will be forced to buy back the carbon
credits at market price. The political will of a government to negotiate the
lowering of a cap must also be considered. In times of economic duress would plans
to reduce caps fall wayward to economic issues?

Carbon offsets are
also very difficult to quantify. The competitive market nature of the carbon offsets
creates the incentive to produce carbon credits for the lowest possible cost,
which in many cases won’t translate into a reduction in atmospheric carbon.

A carbon tax is a step
toward a smart economy. Whereas the intermediate transactions of a carbon
market would line the pockets of big bankers, a carbon tax means government revenue.
This shift in revenue source would allow the Canadian economy to be reorganized
so that personal income taxes would be reduced and public services, transit,
and sustainable infrastructure could be funded.

The NDP cannot afford
to find itself at odds with Canadian environmentalists during the next federal election. With the Liberal and Green
Parties of Canada advocating carbon taxation, the NDP are defining themselves
in opposition to a good policy. 2015 will be the NDP’s first chance at
forming a federal government; we cannot afford to run on a platform of cap-and
trade that will drive environmentalists into Green and Liberal camps. As well, consensus among progressive parties on green house gas emissions all-but guarantees action

As an environmentalist
and New Democrat, I feel compelled to raise these concerns; I plan to sponsor a
policy resolution at an upcoming NDP policy convention that would see the party embrace the ecological and economic benefits of carbon taxation. We can win in
2015, but I’d much rather hit the ground campaigning for an environmental
strategy I can get behind. I hope you agree with the observations I’ve brought
to your attention, and will collaborate on the creation of a pro carbon-tax
policy for Canada’s New Democrats.